Episode 039 - Credit? We Don't Need No Stinking Credit!
Episode 039 - Credit? We Don't Need No Stinking Credit!
Credit scores...they affect everything from the ability to borrow money to insurance costs. They may even play a part in the interview process for a new employer. Wait…what? They affect SO much more than people realize!
In this episode, we discuss all that is affected by your credit. We talk about the "why", "what" and "how" of credit scores, along with the elements that are used to calculate that golden number.
As agents, we can better assist our clients with this topic and help them make decisions that could save them thousands of dollars. That's what a Legendary Agent does!
SHOW NOTES
- 01:20 – Is B a prophet or a saint? The door was accidently opened when Producer Christian gave B a compliment.
- 02:20 – Credit is an integral part of our lives.
- 03:30 – B has seen in teaching this topic that most people don’t know what they are getting into with their credit.
- 04:12 – Song of the Episode: Wham! “Credit Card Baby”
- 06:45 – People get so embarrassed talking about their finances and their personal information. Don’t do that because it hurts you even more. People screw up. Let’s rip off the band-aid and talk about it to fix it.
- 07:55 – Cate: very vulnerable about her finances and talking about it with B and shares her story. B takes it very modestly as usual.
- 09:30 – B shares a personal story about his upbringing and what his father did not do to help him understand about money, finances, and credit. B learned the hard way about credit.
- 10:15 – What does your credit score affect: ability to borrow money on a house, car, or credit card. It also affects PMI rates and homeowner’s insurance costs…all of which can significantly increase the cost of home ownership.
- 11:00 – Cate: interest rate is considerably influenced by your credit score.
- 11:30 – Can change the insurance costs. Lower credit score will cause your insurance rates to increase.
- 12:48 – Many employers are using credit scores to make a hiring decision.
- 13:25 – B treads VERY lightly on the subject of Dave Ramsey and his feelings on credit. B is about responsible borrowing and credit score management.
- 15:45 – Cate’s Side Note Tangent: It’s about B. Motorcycle guardian bell legend.
- 18:30 – Major parts of credit scores: Reporting agencies are Experian, Transunion, and Equifax. FICO vs. Vantage algorithm.
- 21:15 – Different lenders look at different scores differently. Mortgage lenders will look at the FICO scores from each of the three reporting agencies. They also use the middle of the three scores.
- 22:37 – Cate: mortgage lender will look at the information differently than an auto lender and a credit card company. They each place varying weight on separate criteria.
- 23:00 – Have a conversation with the lender about what they will be using to grant credit.
- 23:33 – How can you increase your score? Every person is different and will require a custom process to increase. There are some basic steps, but to truly increase your score, it will require a deep analysis and a well processed plan to make that happen.
- 24:20 – Pay your debt on time and make sure it arrives on the due date.
- 25:10 – Keep credit card usage low.
- 25:35 – Cate: if balance is over 30% it hurts more?
- 26:15 – Rarely open and rarely close credit accounts because of history.
- 26:50 – Monitor your score! Use a free service to track your score on a monthly basis. Watch the number.
- 27:55 – Cate: look at your credit report as inaccurate info can hurt you too.
- 29:30 – Come up with a strategy to plan for your purchases such as for a house or car. Make a better financial decision that will pay for itself over time in cost savings.
- 30:06 – Cate: pick one advisor, not 10. Everyone has a different plan. Pick one that works for you and stick with it.
- 30:35 – Quote of the Episode: “A good financial plan provides a path to success that will be seen in your financial, mental, and psychological wellbeing.” Be intentional to do better. Know how the rules work. Successful people do well because they are not afraid to dig into their financial decisions.
- 31:30 – Closing: Monitoring and tracking your credit score is so easy and vital to financial health. Understand how lenders view your scores and get with a trusted advisor to help you do better and build wealth.
SHOW LINKS
- Movie: “The Treasure of Sierra Madre” – https://www.youtube.com/watch?v=4OcM23Hbs5U
- Blazing Saddles – https://www.imdb.com/title/tt0071230/
- “We Are the World” – https://www.youtube.com/watch?v=M9BNoNFKCBI
- Wham! “Credit Card Baby” – https://www.youtube.com/watch?v=jYrXilpovVc
- Dave Ramsey – daveramsey.com
- Motorcycle Guardian Bells – https://www.bikebandit.com/blog/the-legend-of-the-gremlin-bell-a-bikers-tradition
- Transunion – transunion.com
- Experian – experian.com
- Equifax – equifax.com
- Credit Karma – creditkarma.com
BETWEEN THE LINES LINKS
Web
https://www.facebook.com/groups/realestatebetweenthelines/
https://www.facebook.com/Brian-C-Lee-111822417027919/?
YouTube
https://www.youtube.com/channel/UCcv4dHU39-b5_QVVCIhbcBA?
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